Finances are the most valuable and powerful thing in the world. It moves the world economy and affects the life of each person. Without it, existence becomes impossible, but with funds in the pocket, not everyone thinks about where to spend them.
The correct distribution and expenditure of money is the key to a successful and carefree life. For most people, the correct spending of money is a personal issue that they prefer to decide by themselves. The others prefer to trust funds to particularized companies. For example, https://jkr.co/about– an investment group that helps multiply finances and apply them efficiently.
In cases when calculations do not help determine where and how money is spent, there is an effective tool that everyone can create – a financial map. With such a «device», every person and even company can define in detail where all the money goes and how exactly it is used over a certain period.
Creation of the financial map
The process of drawing a financial map is exceptionally simple and very useful because, during that, many details about how funds circulate can be discovered.
Drawing of the map begins with the main «country» – the source of income. It can be salary or other financial income. There can be few sources on the map, and they can be divided into different sections or integrated into one. For example, in situations when the person works on more than one job or has other earnings.
The next thing is to draw an account, where all income goes. This section is the most important because it forms all branches, which shows exactly where and how much money was spent.
This can be deductions to bank cards, e-wallets, and deposits, expenses for daily needs, payments for utilities, and others. After drawing each expense on the map, all details will be shown:
- how exactly the money is used;
- where expenses can be reduced or increased;
- how to use the funds more efficiently.
Changes on the financial map
Sections on the financial map are not permanent and can be deleted or added over time. Such changes appear due to many different factors, and all the information must be entered in time to track each expense. Some factors have the greatest impact, resulting in large changes on the map.
- Source of income
When new sources appear, or the income of an existing one diminishes, all payments must be reviewed in order to make the most of all available money.
- New payment methods
A new bank card or electronic wallet that has been created must be drawn on the map, regardless of whether they will be used to store funds or payment.
- Accumulation
It is very useful to set aside money for the future or a special event by using deposits or cash out and keeping it in a safe place. Any such expense, even if not regular, is recommended to put on the map.
- Extraordinary expenses
In life, incidents can happen for which one cannot be prepared in advance and which require additional expenditure of funds. A change like this could completely change the entire map.
- Credits and loans
Everyone can face financial difficulties. In this case, it can be used for banks’ services or borrowing money from relatives or known people. Such a financial circumstance leads to a change on the map both at the time of borrowing and in the future when the debt is paid.
- Investments
Investing money in the short- or long-term can payback in the form of additional profits. The use and receipt of such finances influence costs in other sections on the map.
The creation of such map is recommendable for corporations and for stabilizing personal expenses for avoiding accidental spending.